September 9th, 2012 by Questions
I have $85000 unsecured debt. I want to file a CP to pay this off. However I have RRSP’S that would cover this debt . Can I still do a CP or would my RRSP’S affect this.
Posted from: Manitoba
September 09, 2012 at 11:38 am, A licensed trustee said:
Money that has been on deposit in an |RRSP for more than 12 months when you file a proposal (or for bankruptcy) is protected by law – your trustee can’t seize these funds and you cannot be forced to cash them out to pay down your debt.
When you offer your creditors a proposal you need to offer them the greater of: (1) what they would receive if you filed for bankruptcy; and (2) an amount sufficient to get them to vote for your offer – right now that means about 1/3 of your debt.
Log in to Reply
Please post a follow up comment below:
(Note: comments are reviewed by moderators and then posted after approval. In addition, due to high volume some of the comments might not be posted.)
You must be logged in to post a comment.